Contingent liabilities whose ultimate payment is remote should be
A)recorded in the body of the balance sheet.
B)disclosed in the footnotes to the financial statements.
C)disclosed in the auditor's report.
D)ignored.

Question

Quizplus · Accepted Answer

Contingent liabilities that are considered remote do not require recognition or disclosure in the financial statements or footnotes, as they are unlikely to result in a future obligation.

Contingent Liabilities Whose Ultimate Payment Is Remote Should Be